Consumer Debt
Credit Counseling
Debt Consolidation
Debt Resolution
Bankruptcy
On your Own
What is it about?
There are many circumstances in which people accumulate debts that negatively affect their lives. For each person and circumstance there is a strategy.
Credit Counseling
Debt Consolidation
Debt Resolution
Bankruptcy
On your Own
Credit Counseling
| Description | Pros | Cons |
|---|---|---|
| A certified counselor reviews your financial situation, unifies your debts in a payment plan with low interest. | -Unique Payment Reduce interest and rates -Eliminate collector’s calls | -Lenders see you as risky -The principal is not reduced -Credit accounts are closed |
Debt Consolidation
| Description | Pros | Cons |
|---|---|---|
| You get a new credit to pay your current debts. You can have lower interest and have fixed monthly payments. | -Sole Monthly Fixed Payment Flexible Terms -No impact on your credit | -You need good credit -No major reduction -Can end up costing more |
Debt Resolution
| Description | Pros | Cons |
|---|---|---|
| Working with a company, you make monthly deposits until your debts are negotiated for less than you owe. | -Maximum Savings on making minimum payments -Only Monthly Fixed Payment -More quick than making minimum payments | -Collectors calls impact on your credit -Legal risk results vary |
Bankruptcy
| Description | Pros | Cons |
|---|---|---|
| Legal process. Under the guardianship of the court, all your income and assets are examined. Once it is done, it will be debt free. | -Under Chapter 7 they could free you from your debts -No calls from bill collectors -Process is fast | Big and Lasting Impact on your credit -Lost all your credit cards -You can finish a repayment plan without debt relief (most likely) |
On your Own
| Description | Pros | Cons |
|---|---|---|
| You can continue to handle this on your own. You can use online budget tools. | -You can optimize your payments -Flexibility and low cost -Has no impact on your Credit (if you do not delay) | -It requires a lot of budget discipline. -The interests do not go down. -There is no reduction of the principal |